As new parenthood ushers in a myriad of life-changing decisions, one Bengaluru resident is grappling with the classic dilemma of whether to buy or rent a home. The individual, a 33-year-old Redditor, has posed this question to the online community, given their intention to stay in Bengaluru for the foreseeable future due to their child’s education, who is currently one year old.
The Redditor is considering two main options: purchasing an apartment in East Bengaluru priced around ₹90 lakh with a ₹50 lakh down payment, or continuing to rent an apartment for ₹39,000 a month while earning a combined monthly income of ₹2 lakh. The responses from the online community largely favour purchasing a home, reflecting the long-term commitment of 15-20 years. Key considerations highlighted by respondents include the impact of location on quality of life. Many users emphasised the importance of proximity to schools and workplaces. “Owning a home in a location far from your child’s school or your office can significantly detract from your overall living experience,” one user cautioned.
Another crucial point of debate is the size of the down payment. Opinions diverged on whether to commit a large portion of savings or opt for a smaller down payment with a longer loan tenure. One user advised against using the entire ₹50 lakh for the down payment, suggesting that retaining liquid assets for emergencies is prudent. Conversely, another user advocated for leveraging investments or provident funds to increase the down payment and reduce future loan burdens. For those contemplating a property purchase, some users recommended waiting a few years to gain better clarity on schooling and potential changes in market conditions. “Rent until you have a clearer picture and can afford a larger down payment. Consider using your provident fund for a higher upfront payment, but ensure you have insurance for unforeseen circumstances,” one user suggested.
Recent data from the proptech platform Square Yards indicates a robust real estate market in Bengaluru, with a 19% increase in transactions and a 30% rise in registered sales values in Q2 2024. Despite challenges such as flooding and water shortages, demand remains strong, driven by the IT sector and evolving work models. The northern suburbs are emerging as new hotspots, while average residential prices citywide have surged by 32% in the past year. Anarock’s report further highlights that Bengaluru has experienced a 57% increase in residential prices over the past five years, with the current average at ₹7,800 per sq ft. The inventory of residential units has declined by 30% since 2019, and the market is expected to see a 10% appreciation by the end of 2024, with prime areas likely experiencing higher growth.
